Bajaj Auto Net Profit Rises 21 Percent in June Quarter


Mumbai, Jul 14 (IANS): Two-wheeler and commercial vehicle major Bajaj Auto Thursday reported a 21 percent rise in its net profit at Rs.711 crore for the quarter ended June 30 with sales during the period increasing 18 percent to 1,092,815 vehicles.

Motorcycle sales grew 16 percent to 963,051 units, while the company sold 30 percent more commercial vehicles at 129,764 units, according to a regulatory statement filed by Bajaj Auto.

The quarter witnessed its highest ever sales volume for both motorcycles and commercial vehicles, said the company.

Among its flagship motorcycle brands, the company sold 135,000 Discover units on an average each month of the quarter, while 75,000 Pulsar motorcycles were sold every month.

Exports too continued to rise with total overseas sales rising 32 percent to 427,364 units. Motorcycle exports went up 30 percent in the quarter under review to 339,876 vehicles, while three-whelled vehicle exports grew 42 percent to 87,488 units.

The company's margins were under pressure during the quarter because of an increase in cost of raw materials and components.

Expenses on material as a percentage to operating income rose from 71.2 percent in the quarter ended June 2011 to 72.6 percent in the first quarter of the current financial year.

"Despite these inflationary pressures, higher volumes and focus on high end motorcycles enabled the company to declare for Q1, an operating margin of 19.1 percent -- the best in the industry," said the company.

  

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Title: Bajaj Auto Net Profit Rises 21 Percent in June Quarter



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